Market Value Added (MVA)
Market value added (MVA) is the difference between a firm fair value and its invested capital. MVA is a measure of the value a company has created in excess of the resources already committed to the enterprise.
Paying user area
Try for free
Twenty-First Century Fox Inc. pages available for free this week:
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Common Stock Valuation Ratios
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Twenty-First Century Fox Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Twenty-First Century Fox Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value trend
- The market (fair) value exhibited fluctuations over the analyzed periods. It increased from $98,200 million in mid-2013 to a peak of $108,598 million in mid-2014. Thereafter, it declined steadily to a low of $75,988 million by mid-2016, followed by a moderate recovery to $79,711 million in mid-2017. The value then rose significantly to $109,843 million by mid-2018, almost reaching the previous high observed in 2014.
- Invested capital trend
- Invested capital demonstrated a relatively stable pattern with minor variations. Starting at $44,434 million in 2013, it increased to $48,265 million in 2014 before declining to $44,315 million in 2015 and further to $42,462 million in 2016. Subsequently, invested capital rose again to $45,055 million in 2017 and reached $47,272 million by 2018, showing a general upward tendency towards the end of the period.
- Market value added (MVA) trend
- MVA followed a pattern broadly consistent with the market value changes. It peaked at $60,333 million in 2014, then declined sharply to $33,526 million by 2016. After a slight increase to $34,655 million in 2017, the MVA surged to $62,572 million in 2018, aligning closely with the market value trend and indicating a restoration of significant value beyond invested capital towards the end of the timeframe.
- Overall insights
- The data indicate that the company experienced a period of value decline between 2014 and 2016, as reflected in decreased market value and MVA. This was accompanied by a slight reduction in invested capital. A strong recovery is evident from 2017 to 2018, with both market value and MVA returning to previous highs. The invested capital remained relatively steady, suggesting that the value recovery was primarily driven by market factors rather than substantial changes in capital investment.
MVA Spread Ratio
Twenty-First Century Fox Inc., MVA spread ratio calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Alphabet Inc. | |||||||
| Comcast Corp. | |||||||
| Meta Platforms Inc. | |||||||
| Netflix Inc. | |||||||
| Take-Two Interactive Software Inc. | |||||||
| Walt Disney Co. | |||||||
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 MVA. See details »
2 Invested capital. See details »
3 2018 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The MVA exhibited significant fluctuations over the observed periods. Starting at 53,766 million USD in mid-2013, it increased to a peak of 60,333 million USD in mid-2014. Subsequently, a notable decline occurred, reaching its lowest point of 33,526 million USD by mid-2016. Following this trough, a modest recovery was observed, with values slightly rising to 34,655 million USD in mid-2017, and then substantially increasing to 62,572 million USD by mid-2018, surpassing all previous recorded values within the period.
- Invested Capital
- Invested capital demonstrated moderate volatility but generally a stable upward trend. Beginning at 44,434 million USD in mid-2013, it peaked at 48,265 million USD in mid-2014 before declining to 44,315 million USD in mid-2015. Over the subsequent years, invested capital gradually increased again, reaching 47,272 million USD by mid-2018. The fluctuations, however, were less pronounced compared to those observed in MVA.
- MVA Spread Ratio
- The MVA spread ratio, expressed as a percentage, indicated the relationship between market value added and invested capital. Initial values were strong, with a ratio of 121% in mid-2013, rising further to 125.01% in mid-2014. This was followed by a steep decline, dropping below 100% to 93.98% in mid-2015, and continuing to fall to a low of 76.92% by mid-2017. A pronounced recovery occurred in the final period, with the ratio surging to 132.37% by mid-2018, reflecting improved value generation relative to invested capital.
- Overall Analysis
- The data reveals a period of strong performance and value creation in 2013 and 2014, followed by a downturn in market value added and efficiency in value generation through 2016 and 2017. Despite the relative steady level of invested capital, the value created per invested dollar weakened substantially during this period. The marked recovery in 2018 suggests a renewed capacity for market value creation, with both MVA and the MVA spread ratio achieving their highest levels in the observed timeframe. This pattern may reflect changing market conditions, operational improvements, or strategic initiatives enhancing the company’s valuation beyond the invested capital base.
MVA Margin
Twenty-First Century Fox Inc., MVA margin calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Revenues | |||||||
| Add: Increase (decrease) in deferred revenue | |||||||
| Adjusted revenues | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Alphabet Inc. | |||||||
| Comcast Corp. | |||||||
| Meta Platforms Inc. | |||||||
| Netflix Inc. | |||||||
| Take-Two Interactive Software Inc. | |||||||
| Walt Disney Co. | |||||||
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 MVA. See details »
2 2018 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added demonstrates a fluctuating trend over the six-year period. It initially increased from 53,766 million USD in 2013 to a peak of 60,333 million USD in 2014. Following this, there was a marked decline reaching a low of 33,526 million USD in 2016. Subsequently, a gradual recovery ensued with the MVA rising to 34,655 million USD in 2017 and then sharply increasing to 62,572 million USD in 2018, which represents the highest value in the dataset.
- Adjusted Revenues
- Adjusted revenues experienced variability but generally maintained a fluctuating trajectory. Revenues grew from 27,472 million USD in 2013 to 31,880 million USD in 2014. Thereafter, revenues decreased to 28,745 million USD in 2015 and further declined to a low of 27,383 million USD in 2016. In subsequent years, revenues modestly improved to 28,575 million USD in 2017 and further increased to 30,498 million USD in 2018, approaching prior peak levels.
- MVA Margin
- The MVA margin, expressed as a percentage, displays notable variation throughout the period. It started high at 195.71% in 2013, slightly decreasing to 189.25% in 2014. A significant decline followed, bottoming out at 121.28% in 2017, indicating a compression in market value created relative to revenues. However, in 2018, the margin rebounded sharply to 205.17%, the highest in the timeframe, suggesting improved value generation efficiency relative to revenues.
- Overall Analysis
- Throughout the six-year span, the data reveals volatility in the company's market performance and revenue generation. The simultaneous drop in MVA and revenues from 2014 to 2016 points to challenging periods affecting both market valuation and operational performance. The resurgence in MVA and its margin in 2018 suggests a significant recovery in market value beyond the level justified solely by adjusted revenues, potentially reflecting improved market perception or strategic actions enhancing shareholder value. The MVA margin's rebound to above the initial years' levels indicates enhanced efficiency in translating revenues into market value in the latest period analyzed.